Texas Challenges U.S. EPA Over New Rule on Methane Emissions

Texas, the nation’s biggest energy producing state, filed a complaint asking a court to block a new rule by the US Environmental Protection Agency that targets reductions in methane emissions from the oil and gas industry.

State Attorney General Ken Paxton filed the complaint Friday in a Washington federal court, accusing federal regulators of “blatant overreach” in rulemaking and of usurping Texas authority to set its own emission standards.

EPA officials say the rule targets drastic reductions in air pollution from the US oil and gas industry, the largest source of methane. The agency estimates methane emissions would be cut by 58 million tons over 14 years — roughly the equivalent to all carbon dioxide emitted by the power sector in 2021.

The Texas Railroad Commission, which oversees the state’s massive oil and gas industry, asked Paxton in January to challenge the EPA, saying the new rule would be too onerous on small producers. Texas got a record $24.7 billion in taxes and royalties from the industry in 2022.

A crack down on methane in the US comes as governments around the world intensify restrictions on greenhouse gas emissions. But the standards will face a tough test in the US court system, where the rule-making authority of federal agencies has been challenged by key rulings.

Leaders in the oil and gas industry say companies are already working to stem methane pollution and have questioned if the new standards might make it difficult to continue meeting energy demand.

Environmental groups say the rules will help ensure all companies are taking the necessary steps to reduce greenhouse gas emissions, not just leaders in the industry. Opponents say the rules are unreasonable, particularly for smaller producers who may face financial difficulties bringing older equipment into compliance.